FDTC working to balance budget
Florence County, S.C. (WPDE) —
Florence Darlington Technical College (FDTC) Board of Commissioners will discuss the budget at Tuesday's meeting, according to the board's agenda.
FDTC has had a tough year from having to pay back federal government to having its credit rating downgraded.
The school has to repay the U.S. Department of Education $1.6 million due to noncompliance with Title IV reporting standards.
Moody's Investors Service downgraded Florence-Darlington Technical College's credit rating which affects approximately $12.8 million of rated debt, according to a news release.
Moody's website says the company "is an essential component of the global capital markets, providing credit ratings, research, tools and analysis that contribute to transparent and integrated financial markets."
The release said the "downgrade from A3 to Baa2 reflects the college's substantial use of reserves causing a precipitous and sudden decline in liquidity to 12 days cash on hand at fiscal year-end (June 30) 2017 from 72 days one year earlier, declining enrollment leading to further weakening of deficit operations, and a US Department of Education sanction requiring the college to repay $1.6 million due to noncompliance with Title IV reporting standards."
The release said a review will focus on the "college's ability to meet its short-term operating needs given severely limited liquidity and prospects for returning to balanced operations."
We asked for a copy of the preliminary budget, but have been told that it is still in the draft process.
We will have more on the budget following next Tuesday's meeting.